The FTSE 100 surged to a fresh record high on Tuesday, driven by retailers after strong festive results from Next and encouraging supermarket spending data.
The new year has started firmly in risk-on mode with investors looking past geopolitical tensions to focus on possible interest rate cuts, reasonable global growth rates, and robust corporate earnings.
London’s leading index was 0.6% higher at the time of writing, trading comfortably above the 10,000 level at 10,070.
Next was among the risers after releasing a very respectable festive trading period, helped by soaring online and overseas sales.
“Next has delivered another resilient Christmas performance, underscoring its position as one of the UK high street’s strongest operators,” said Adam Vettese, market analyst for eToro.
“Increased full price sales and disciplined stock management continue to support solid cash generation, and management’s controlled guidance reinforces confidence in the group’s operational grip.”
Next shares were 3% higher at the time of writing.
There was no read across from Next’s results to JD Sports, whose shares sank 6% on Tuesday and were the FTSE 100’s top faller. JD Sports will report festive-period sales later in January.
Tesco and Sainsbury’s rose by more than 2% after Worldpanel supermarket data showed that festive shoppers were out in force, which bodes well for their upcoming trading statements.
“Data from Worldpanel paints an interesting picture of Christmas trading for the grocery sector as investors await reports from Tesco and Sainsbury’s later this week,” Russ Mould explained.
“Worldpanel data shows a slight easing in grocery price inflation, which seems to have encouraged some shoppers to go on a bit of a splurge. Sales of premium own-label products like Sainsbury’s Taste the Difference offering and Tesco’s Finest range were above £1 billion for the first time, suggesting consumers were in the mood to treat themselves over the festive period.”
Miners again played a central role in the FTSE 100’s latest record high after copper prices pushed higher, providing support for London’s selection of large-cap miners.
“Copper pushed through $6 a pound to fresh record highs, driven by expectations that global supply will tighten further this year, and worries that potential new US tariffs on refined metals could squeeze major hubs like London and Shanghai,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“Demand remains solid too, with copper right at the heart of power‑grid upgrades, renewable energy build‑outs and the surge in data‑centre construction. It’s a backdrop that plays neatly into the hands of the big miners, many of whom have been pivoting hard toward copper in recent years and now look well positioned to benefit from prolonged higher prices.”
Copper pureplay Antofagasta was back among the gainers with a 1% increase.